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Olympia Tech Park (Chennai) Private Limited RR PDF
Olympia Tech Park (Chennai) Private Limited RR PDF
Olympia Tech Park (Chennai) Private Limited RR PDF
This rating advisory is provided in relation to the rating of Olympia Tech Park (Chennai) Private
Limited
Cost overruns in ongoing projects and timely renewal of contracts with tenants in the software
technology park
Interest rate movements and its impact on demand from prospective home buyers
Future projects and their debt funding
CRISIL Ratings has a policy of keeping its accepted ratings under constant and ongoing
monitoring and review. Accordingly, it seeks regular updates from companies on business and
financial performance. CRISIL is yet to receive adequate information from Olympia Tech Park
(Chennai) Private Limited (OTPL) to enable it to undertake a rating review. CRISIL is taking all
possible efforts to get the rated entity to cooperate with its rating process for enabling it to carry
out the rating review.
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refer to CRISIL Ratings publication dated April 30, 2012 - 'Information Availability - a key risk
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Rating Action
Total Bank Loan Facilities Rated Rs.417 Crore (Enhanced from Rs.250 Crore)
Long Term Rating CRISIL BBB+/Stable (Reaffirmed)
1 crore = 10 million
Refer to annexure for Details of Instruments & Bank Facilities
Detailed Rationale
CRISIL has reaffirmed its rating on the long-term bank facilities of Olympia Tech Park (Chennai) Private Limited
(OTCPL; part of the Olympia group) at 'CRISIL BBB+/Stable'.
The ratings continue to reflect the diversified presence in both residential and commercial real estate segments, its
locational advantage coupled with healthy occupancy in the commercial segment and its comfortable financial risk
profile and liquidity. These strengths are partially offset by geographical and customer concentration risks in revenue
profile and inherent risks in the Indian real estate segment and risks related to timely renewal of lease contracts.
Weakness
* Geographical concentration risks in its revenue profile and the inherent risks in the Indian real estate
segment and timely renewal of new contracts
With operations limited to Chennai, the company faces geographical concentration and event risks on account of
single site property in the commercial segment, making revenue susceptible to various events, which could adversely
affect rentals. Any unfortunate communal or political event or natural calamity may lead to cancellation of contracts
and difficulty in finding new tenants at the similar rent. In the event of such risks, the primary revenue streams will be
affected, jeopardising the debt servicing ability.
Outlook: Stable
CRISIL believes the OTCPL will maintain its adequate debt protection metrics backed by steady cash flow from lease
rentals over the medium term. The outlook may be revised to 'Positive' if more-than-anticipated escalation in lease
rentals leading to improved debt service coverage ratio (DSCR). Conversely, the outlook may be revised to 'Negative'
if unanticipated delays in lease receipts or if occupancy levels reduce thereby adversely affecting debt-servicing
capabilities.
1
About the Company
OTCPL, incorporated in 2005, has developed a software technology park, Olympia Technology Park at Guindy
(Chennai). The company has developed total area of 1.25 million square feet in the business park, which has been
fully occupied. The company is also currently developing six residential real estate projects in Chennai.
On a provisional basis, profit after tax (PAT) was Rs 49.1 crore on operating income of Rs 405.66 crore in fiscal
2017, as against PAT of Rs 32.1 crore on operating income of Rs 436.83 crore in fiscal 2016.
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Annexure - Details of Instrument(s)
Name of Date of Coupon Issue size Rating assigned
ISIN Maturity date
instrument allotment rate (%) (Rs Cr) with outlook
CRISIL
NA Long Term Loan NA NA Dec-2024 310.2
BBB+/Stable
Drop Line Overdraft CRISIL
NA NA NA NA 29.0
Facility BBB+/Stable
Proposed Long
CRISIL
NA Term Bank Loan NA NA NA 77.8
BBB+/Stable
Facility
Instrument Type Quantum Rating Date Rating Date Rating Date Rating Date Rating Rating
CRISIL CRISIL
Fund-based Bank LT/S No Rating
417 BBB+/Sta 30-03-16 BBB+/Sta -- -- --
Facilities T Change
ble ble
Table reflects instances where rating is changed or freshly assigned. 'No Rating Change' implies that there was no rating change under the release.
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4
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advice. The Report is not an offer to sell or an offer to purchase or subscribe for any investment in any securities, instruments, facilities or solicitation of any kind or
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within the meaning of any law or regulation (including the laws and regulations applicable in the US).
Ratings from CRISIL Rating are statements of opinion as of the date they are expressed and not statements of fact or recommendations to purchase, hold, or sell any
securities / instruments or to make any investment decisions. Any opinions expressed here are in good faith, are subject to change without notice, and are only current as
of the stated date of their issue. CRISIL assumes no obligation to update its opinions following publication in any form or format although CRISIL may disseminate its
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and/or clients when making investment or other business decisions. The recipients of the Report should rely on their own judgment and take their own professional
advice before acting on the Report in any way.
5
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for subscription at a fee – more details about CRISIL ratings are available here: www.crisilratings.com.
CRISIL and its affiliates do not act as a fiduciary. While CRISIL has obtained information from sources it believes to be reliable, CRISIL does not perform an audit and
undertakes no duty of due diligence or independent verification of any information it receives and / or relies in its Reports. CRISIL keeps certain activities of its business
units separate from each other in order to preserve the independence and objectivity of the respective activity. As a result, certain business units of CRISIL may have
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information received in connection with each analytical process. CRISIL has in place a ratings code of conduct and policies for analytical firewalls and for managing
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CRISIL’s rating criteria are generally available without charge to the public on the CRISIL public web site, www.crisil.com. For latest rating information on any instrument
of any company rated by CRISIL you may contact CRISIL RATING DESK at CRISILratingdesk@crisil.com, or at (0091) 1800 267 1301.
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